|
Stocks rally after US rate cut |
|
In the city FTSE 100 index rebounded by 205 points the biggest gain since June. Wall street also gained along with other markets in Europe. In a move welcomed by many investors, the federal bank cut its discount rate by half a percent from 6.25 per cent to 5.75 per cent. The bank also hinted that it was prepared to cut its Feds Fund rate if this move failed to calm the market. Sceptics of the move will see as a sign of desperation from the Federal bank and will only be a short-term respite to the credit squeeze caused by over exposure by several banks to the US subprime mortgage market. Readers have left 3 comments. I think this is a great site. Charly Lee, Leyton, England Quite frankly an interest rate cut is long overdue. The feds need to get of their butts and do something about this imminent recession. John Lancer, NY, US A rate cut is a must. Although whether it will prevent a recession is another question. Scott Chelsea, Norfolk, England |
